ECONOMIC CRISIS ROLLING BACK ASIA’S DEVELOPMENT GAINS – UN OFFICIAL

The economic crisis is rolling back the significant progress made to date in Asia and the Pacific in meeting the Millennium Development Goals (MDGs) – which range from halving extreme poverty to halting the spread of HIV/AIDS and providing universal primary education, all by the target date of 2015 – according to a senior United Nations official.

Noeleen Heyzer, Executive Secretary of the UN Economic and Social Commission for Asia and the Pacific (ESCAP), said her organization has responded to the crisis by encouraging policies that include social programmes such as health coverage, pensions, education and agricultural extension services, as well as investment in small and medium scale enterprises.

"The huge scale of government spending in the pipeline in many countries offers an unprecedented opportunity to design development policies that will bring about more inclusive and sustainable development," Ms. Heyzer said during the course of the substantive session of the UN Economic and Social Council, which is currently taking place in Geneva.

"Pro-poor policies aimed at strengthening social protection systems not only create the social foundations for more inclusive societies, they free up spending of consumers. In other words social protection systems also make good economic sense."

She added that financial stimulus packages and reforms could help create a more integrated and coordinated Asia and the Pacific that builds upon collective regional strengths and resources.

In addition, she highlighted the need for appropriate investments in infrastructure to create economic corridors that link less developed countries to economic centres in the region, thereby increasing intra-regional trade.

As a result, the recovery of larger economies like China, India and the Republic of Korea will have "greater reciprocal positive spin offs" for their smaller neighbours.

Ms. Heyzer noted that ESCAP has sought to provide its member States with the necessary strategic analysis, policy options and technical assistance.

"Our flagship publication, the Economic and Social Survey of Asia and the Pacific 2009, provides a compelling analytical basis for the policy reforms that the region will need to collectively implement in response to the economic crisis," she said.

The report predicts that developing nations in the region will see their growth drop from 5.8 per cent last year to 3 per cent this year, with as many as 23 million people – particularly women in the manufacturing sector – potentially losing their jobs.

For its part, the Asian Development Bank estimates that the number of poor people in Asia and the Pacific could climb by 60 million in 2009 and approach 100 million by 2010, thwarting the region's achievement of the MDGs.
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